Examining the linkage between human capital and energy consumption: cross-country evidence

Though voluminous empirical studies examine the linkage between energy consumption (EC) and economic growth, the impact of human capital on EC is scarce. This paper investigates this research issue by using annual data of 73 countries over the period 1990-2014. Further, we classify 73 countries based on income (developed, developing and emerging economies) and regions (Asia, Africa, Europe and Latin America). The empirical results indicate that human capital negatively affects EC. This implies that EC can be lowered by improving human capital, which ultimately can help in energy conservation and environmental protection. Policies promoting substitutability between energy inputs and human capital, and structural policies like improving economic efficiency and improving human capital through educational levels can help economies in achieving greater sustainable growth with low EC.